What is the next step YOU need to make to grow your company?

Mikey P

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Art Kelly aside, most of us here would like to grow our businesses.
For some it maybe just getting a help and more efficient equipment and for others they wont stop until they loose track of how many trucks they own.
Most of the MB'rs I converse with would be happy with 2 or three trucks, a growing retirement portfolio, a few vacations a year and to still be involved in the day to day operations of their baby. Most of us are control freAks and don't want to roam the planet on Kayaks while collecting dividends from some long ago created venture..

So what is your next step?
  • A back up van?
  • A full time second van?
  • Water damage school?
  • Attending SFS?
  • Hiring phone help?
  • Move the buisness out of my home and into a storefront?
  • My name is Greg Cole and I wont sleep until I take over the state of Alabama?
  • a Fourth Van?
  • Coming to terms that the ETM I bought into hook line and sinker just ain't going to cut it if I want to clean more than 2 jobs a day?
  • Pouring concrete for my new Rug Spa wash pit?
  • _______________________________?





For Connoisseur it's update the fleet by upgrading our second van from a mear back up to a full featured do everything unit and to put it on the road 4 or 5 days a week. Too much is getting away...
 

Chris A

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a real assistant. I've been stuck at hiring college kids and live at home no ambition types in the past out of convenience and so I wouldn't have to worry about keeping them fed in the winter. I need to anti up and hire the right person who can grow with the business
 
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We need to move beyond my surly biz partner answering every call. He's too busy to do anymore and too busy to hire and train a csr.
 

Shane Deubell

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1. Personal- Need to haul ass for about 12-24 months to push over the next hump. Catch the fever like in my first couple years.

2.Business- Hire a real lead tech that i can groom into a part-time operations manager for training, supervising, equipment/supply, etc. Currently have lead techs but none of them can grow into that role, definitely have to pay little more.

The great news is really have a vision now for what the goal is for the next 3-5 years, have business plan, money saved up, software, basic business foundation,most of marketing/sales system.
Now its time to push the button...
 

tmiklethun

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What does "ETM" mean? Hope that doesn't make me should foolish.

Coming to terms that the ETM I bought into hook line and sinker just ain't going to cut it if I want to clean more than 2 jobs a day?
 

Steve Toburen

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I need to anti up and hire the right person who can grow with the business
Yeah, Chris, I call it "hiring for the ghost position". You TELL THEM you are looking for a tech but you are really looking at their personality to see if they at least have the POTENTIAL to grow with the company.

Steve

PS I like Papa Nick Paolella's saying, "When I started hiring people smarter than me I learned just how smart I was!" Then he looks at Bill and me and says, "Remind again why I keep you two around." Seriously, though, the right person will challenge and push you and that can be a good (if somewhat uncomfortable) thing.
 

TomKing

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Mike
Thoughts on most wanting to be just a 2-3 truck company. While that seems great you really are not at the place in my opinion to be stable. We have arrived at the 3-4 truck and it is not auto pilot. Your over head goes up you need a bigger staff to handle it but keeping yourself busy is a constant push. From where I am standing 5-6 trucks seems to be where you are going to hit a mark of better profits and the size to begin to develop leadership that can run things in your absence.

Thoughts from those that are currently in the 4-6 range?

We bit the bullet this year and hired a qualified office manager with a solid background. The change is amazing. I am thinking at 5-6 trucks we will be ready for a production manager.

Thoughts from those that are there?

The next thing I need to do now that I am full time with Sani-Bright is run a solid sales route with solid frequency on our customers for the next year.

We also need to develop our services with the higher profit margins. WATER, RUGS & WOOD baby.


Art Kelly aside, most of us here would like to grow our businesses.
For some it maybe just getting a help and more efficient equipment and for others they wont stop until they loose track of how many trucks they own.
Most of the MB'rs I converse with would be happy with 2 or three trucks, a growing retirement portfolio, a few vacations a year and to still be involved in the day to day operations of their baby. Most of us are control freAks and don't want to roam the planet on Kayaks while collecting dividends from some long ago created venture..

So what is your next step?
  • A back up van?
  • A full time second van?
  • Water damage school?
  • Attending SFS?
  • Hiring phone help?
  • Move the buisness out of my home and into a storefront?
  • My name is Greg Cole and I wont sleep until I take over the state of Alabama?
  • a Fourth Van?
  • Coming to terms that the ETM I bought into hook line and sinker just ain't going to cut it if I want to clean more than 2 jobs a day?
  • Pouring concrete for my new Rug Spa wash pit?
  • _______________________________?





For Connoisseur it's update the fleet by upgrading our second van from a mear back up to a full featured do everything unit and to put it on the road 4 or 5 days a week. Too much is getting away...
 

Art Kelley

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I remember talking to a guy about 20 years ago who I went to junior high with. He was (and probably still is ) operating a large carpet cleaning company he started in this area. Kind of a low end crappy type company. They advertised heavily in the TV Guide. He asked me "How many jobs do you do a day?" I told him maybe five or six (I really pounded them out back then). He said they do 150 jobs a day. He said "I bet you make more money then I do." I told him I hope he made more than me. The point is, what's important is how much you net, how much stress do you want to have, does it really matter how many trucks you run if you can do just about as well by yourself and be stress-free?
 

Royal Man

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I remember talking to a guy about 20 years ago who I went to junior high with. He was (and probably still is ) operating a large carpet cleaning company he started in this area. Kind of a low end crappy type company. They advertised heavily in the TV Guide. He asked me "How many jobs do you do a day?" I told him maybe five or six (I really pounded them out back then). He said they do 150 jobs a day. He said "I bet you make more money then I do." I told him I hope he made more than me. The point is, what's important is how much you net, how much stress do you want to have, does it really matter how many trucks you run if you can do just about as well by yourself and be stress-free?

I make far more and have a lot less headaches since I have ben solo that when I was running four full time crews. Bigger isn't always better.
 

Royal Man

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then you were running your business wrong.

It was a whole different world back then. Before low cost ways to draw clients like the internet. I had 10 telemarketers, office , shop and full time receptionist and relied heavy on print advertising. That is the way it was done back then. Many were advertising 6 bucks a room with $40 minimums. We were doing 15- 20 jobs a day. But, the profit margins were too low with all the overhead. Even now I think it would take 5-6 crews at least get close to the sweet spot. ( if the owner is off the truck) My area is just too saturated with cleaning companies to grow that large. (70 companies with 250K population) Plus I don't need the headaches this point in my life. I'm happy with $700- 1100 a day and almost no overhead. You have to remember that a OO can make 80-90% profit with much of the equipment the paid off. But, for every employee the net may be 20% or less each with increased overhead, insurance, facilities and increased advertising to turn clients.
 
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Kevin B

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We are on our way to our best year ever. We have a ton of momentum and have just met with a business consultant who we hope will get us to a point of profitability that we can expand without much debt. We could use a second truck NOW, but i think we will hold off till '14. I think our biggest steps are more streamlined customer entry software, and someone to answer phones and book jobs!

Those things alone would have immediate impact!
 

TomKing

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My area is just too saturated with cleaning companies to grow that large. (70 companies with 250K population) Plus I don't need the headaches this point in my life.

First of all how many of those 70 companies are real companies?
I bet most are just some broken down unit with a guy that has no idea what he is doing
I would guess 5-7 of them are apartment cleaners who operate by a different model
Maybe 10 are serious competitors.

We have 340 carpet cleaner listed in our city of 1.4 million. By your standard I could never be successful.
We have maybe 25 good companies. 10-12 that we need to even worry about. Several are on this board or lurk. I know you are out their. LOL

It does not matter where you are or how many people call themselves carpet cleaners.

The reason companies get larger is because those leading it enjoy leading. They don't see the problems as headaches. They are challenged by the day to day operations of a larger team. It brings them energy.

I just got done with our staff meeting and I went away pumped. We initiated some new procedures. We had a tech lead our team through prepping for a presentation at the State Fair this Saturday. Our night crew lead guy gave us a update on some new cleaning procedure at a major account. I went over some new driving regulations. We had two trucks in the last 6 weeks scraped up. Headaches to some or the challenges to running a growing business. My thought are how do I become a better leader, How do I train people better so these things don't happen as frequently? Those challenges' to leaders are invigorating not headaches.

I get tired of hearing people talk about the management process as a headache. Sure some days are better then other but if you are a true leader with skills to motivate a larger team you get pumped up thinking about how to make your team better. Not what a headache your employees and company has become. The old adage speed of the leader, speed of the team still applies. Maybe if someone is sitting out there and always describing the present or the past as a problem /headache they should reassess who is really causing the problems, poor followers or poor leaders.

If guys are on this board and they want to grow the first place to start is with leadership skills.
If they are constantly talking bad about their team they are doomed.
If they refer to their employees negatively they will fail. It's like the guy who comes to a dinner party and bad mouths his wife the whole time. Most sane people stand there and say what an idiot you married her and she's that bad. What usually happens to those couples? They don't last.

If you see your company as a bunch of problems and your employees as lacking who's to blame? You are! You hired them. You trained them. You set up the systems.

People who are leaders, are change agents. Leaders of movements are driven till their last breath to make the organizations and businesses they lead move forward not backward.

Look at Zig Zigler, Papa Nick, Warren Buffet these guys are certainly successful both in quality of life and financially. The could sit back and say I'll just speak 2-3 times a year, Ill just have one little supply store in south Chicago, Ill just run one little bank in Omaha. No these guys have, are leading and will lead till their final breath. They will spend the last moments of their lives trying to make their message, organization or corporation grow larger, get better, be more efficient.

Guys who are looking to grow their business to the next truck or to a fleet of trucks can't, won't and don't make excuses for how hard it is or was. They don't look at their physical location as a handicap. If you have the right systems, message and product the number of competitors does not matter. You can not change what everyone else does you can only control what you do. Real leaders don't see the obstacle they see the opportunities.

There are tons of board members and lurkers looking to hear positive enforcement of what can be done not what can't be done. You will never hear some of the top speakers and leader on this board or in our industry saying it can't be done or referring to their present or past team as headaches.

Let's put some positive stuff out their to help those that are still growing, still dreaming and still developing new skills.

Let's not show them we can put the old nag in the barn the race is over. I for one want to with balance and a schedule of my choosing die on the track helping to make my organization or another better.

Ps Bigger is always better if you are a leader! Other wise there is nothing to do with your skills and gifts.
 
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Steve Toburen

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Mike
Thoughts on most wanting to be just a 2-3 truck company. While that seems great you really are not at the place in my opinion to be stable. We have arrived at the 3-4 truck and it is not auto pilot. Your over head goes up you need a bigger staff to handle it but keeping yourself busy is a constant push. From where I am standing 5-6 trucks seems to be where you are going to hit a mark of better profits and the size to begin to develop leadership that can run things in your absence.
I couldn't agree more, Tom. It seems most limit their ambition to be a two-three truck company. And of course this is not to be scoffed at. BUT at this "medium level" it is almost like you are "too big but too small" as in ...

Too big to enjoy the "carefree life" of an owner-operator not having to endure the inevitable headaches of employees but...

Too small to achieve "Critical Mass" where the business will run with you ... or without you for an extended period.

NOTE: The true benefit of a Critical Mass operation is not greater income. If an owner-operator is willing to flog themselves he or she can come close to the net income of a larger 6 truck or more company. BUT the O/O doesn't have the Personal Freedom that Critical Mass provides. Plus an O/O business will have little sales potential at retirement time which is OK if you have made "alternative arrangements".

Steve

PS Big or small- both business models work and that is what makes this industry so great. But I always say "Beware the Road In-between"! In fact, I've even written an entire paper on how to avoid the "too big but too small" business model. Anyone who wants a spam-free copy for free can write me at stoburen@StrategiesForSuccess.com and ask me for the "In-between" Report.
 

Kevin B

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^^excellent responses Tom and Steve. I am that guy. We are working hard to make it happen. If Zero Res and Stanley can have 5-12 vans, so can I. I just need to stay committed to the systems that will get me there. I want to build my business so it has value to sell. The only thing you have to sell as an O/O is your equipment, not much else
 

Mikey P

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I couldn't agree more, Tom. It seems most limit their ambition to be a two-three truck company. And of course this is not to be scoffed at. BUT at this "medium level" it is almost like you are "too big but too small" as in ...

Too big to enjoy the "carefree life" of an owner-operator not having to endure the inevitable headaches of employees but...

Too small to achieve "Critical Mass" where the business will run with you ... or without you for an extended period.

NOTE: The true benefit of a Critical Mass operation is not greater income. If an owner-operator is willing to flog themselves he or she can come close to the net income of a larger 6 truck or more company. BUT the O/O doesn't have the Personal Freedom that Critical Mass provides. Plus an O/O business will have little sales potential at retirement time which is OK if you have made "alternative arrangements".

Steve

PS Big or small- both business models work and that is what makes this industry so great. But I always say "Beware the Road In-between"! In fact, I've even written an entire paper on how to avoid the "too big but too small" business model. Anyone who wants a spam-free copy for free can write me at stoburen@StrategiesForSuccess.com and ask me for the "In-between" Report.


I would hope to assume that both you AND Tom have done demographic studies to help growing companies deductif their communities can support a five truck circus?


While I'm not saying it can't be done cause most, if not all of my multi truck competitors are knuckle dragging idiots, I just don't have the balls to envision US running 5 trucks all year long in my small town.

I dont need to Kayak the globe but I sure do need to figure out how to pay 100K to each and every employee so they too can live HERE
 

Chris A

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Too funny on the 2-3 truck thing. I've always envisioned that being the point of me being comfortable in my business. Two capable crews humpin all day, me handling overflow, estimates, and other production related stuff, and my wife and a csr handling the front office. I guess all owner ops think alike... I am sure at that point I will be thinking about the next step.
 

Chris A

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I think I need to change my answer to, "sell my boat and f*ckin focus..."
 

Shane Deubell

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The whole "how many trucks do you have" can be a misleading figure, some people average $80k a year per truck while others $180k and still others $280k ...
2-3 Trucks is great for most people as long as you set a goal towards $200k per truck and keep overhead low.

I know someone with 5-6 trucks and i highly doubt they have more $400k in revenue, what the hell are they doing? who knows....

Figure out the revenue/profit part then plug in whatever equipment you need to get there.
 

Steve Toburen

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While I'm not saying it can't be done cause most, if not all of my multi truck competitors are knuckle dragging idiots, I just don't have the balls to envision US running 5 trucks all year long in my small town.
How many people live in your marketing area, Mike? (Not just your "small town"?)

Steve

PS I agree that Santa Cruz is more expensive to live in. However, this sort of has a leveling effect because an expensive area will support higher pricing/ ability to pay a higher wage IF the owner has the guts to charge more.
 

Mikey P

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260K give or take in SC county.


but a good 20k of those live under bridges. (with carpet under their cardboard sheets I might add..)
 

Steve Toburen

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260K give or take in SC county.
You'll need to find your own personal "sweet spot" in business and life, Mike. But don't let a "small" population like 260,000 people hold you back. By doing all "three legs of the stool" (commercial, residential and restoration) we grossed 1.3 million in today's dollars with a total market base of 30,000 people.

Your personal life goals may not include building a 10 million dollar plus business there in Santa Cruz and that is fine. But don't let anyone tell you it isn't possible.

Steve

PS Just to save someone time asking that 1.3 million broke down to around 30% in high-end residential, 30% in commercial work (mostly regular contract carpet cleaning accounts) and 40% in fire and water damage.
 

Shane Deubell

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Just put a portable in a trailer and clean all the trailer parks in the area...

All Profit! :icon_rolleyes:
 

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